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CONSUMERS BEHAVIOR IN FAST FOOD RESTRUANT
“A food value perspective from Sukkur”
SUBMITTED BY:
BILAL AHMED HAKRO
Project Supervisor
Dr. Qamar Abbas Mangi
Project Submission is partial fulfillment of the requirements for the degree of
BACHELOR OF SCIENCE
IN
Management Sciences
FACULTY OF MANAGEMENT SCIENCES
SHAH ABDUL LATIF UNIVERSITY, KHAIRPUR
Batch 2019
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Title of Project
CONSUMERS
BEHAVIOR IN
FAST FOOD
RESTRUANT
“A food value perspective from
Sukkur”
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Table of Contents
Abstract...................................................................................................................................................6
1. Introduction ....................................................................................................................................7
1.1 Problem Statement.......................................................................................................................8
1.2 Research Questions: .....................................................................................................................8
1.3 Objectives: ....................................................................................................................................8
1.4 Scope/Significant: .........................................................................................................................8
2. Theoretical Background / Literature Review ......................................................................................9
2.1 The Concepts of Consumer Behavior............................................................................................9
2.2 The customer–business relationship ....................................................................................10
2.3 The Concepts of Demographic Characteristics...........................................................................10
3. Conceptual Framework.................................................................................................................12
4. Methodology.....................................................................................................................................13
5. Empirical Results...............................................................................................................................14
4.1 Descriptive Analysis: ...................................................................................................................14
4.2 Graphical Presentation ...............................................................................................................15
6. Discussion..........................................................................................................................................24
Group 1: Utilitarian:..........................................................................................................................24
Group 2: Hedonic:.............................................................................................................................24
Group 3: Ethical Values:....................................................................................................................24
7. Conclusions .......................................................................................................................................25
8. Limitations and Suggestions .............................................................................................................26
9. Recommendations............................................................................................................................26
References ............................................................................................................................................27
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Dedication
All dedication and praises to ALLAH Almighty who is REHMAN and RAHEEM and one
who knows the secrets of hearts.
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ACKNOWLEDGEMENT
I exalt and bow down before the creator, the most Merciful, the Gracious, the Compassionate,
the Beneficent and the Sole Source of Wisdom and Knowledge for the abundant blessings
bestowed upon me during the course of my project work. Glory indeed to Almighty ALLAH
for helping me complete my research project.
I offer my cordial gratitude to my research supervisor Dr. Qamar Abbas Mangi for his
guidance, support, patience, endless encouragement, positive criticism, discussion, and
intellectual input.
I express my sincere thanks to Dr Akhtiar Ali Ghumro Chairman Faculty of Management
Sciences for his gracious support with the students during the days of our week.
Last but by no means the least, I would like to thank all my friends and colleagues and all other
well-wisher who never failed in helping me whenever their assistance was needed.
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Abstract
Even though it is made with unhealthy or insufficiently nourishing ingredients, fast food is
convenient and delicious. The intensity of the fast food trend and its impact on Pakistani society
were the main topics of this paper. The previous study had been reviewed to explain the
findings. A questionnaire had been used to gather information. Fast food is a favorite of both
nuclear and joint family systems due to its flavor. Fast food is very popular outside of homes.
Fast food can make you feel full. Furthermore, fast food is not an economical option. Fast food
is also used for fun and enjoyment. It is also determined that frequent consumption of fast food
contributes to obesity, indigestion, high cholesterol, and other health issues. People prefer fast
food to home-cooked meals due to its flavor and ease of availability. Fast food is another major
factor in poor diet choices. Due to their busy schedules, workers prefer fast food at work. There
is a negative correlation between liking, consuming, and spending money on fast food and age
and education. However, as income rises, so will people's preference for fast food.
Keywords: Fast food, Obesity, high cholesterol, Junk food
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1. Introduction
Consumer behavior is the people’s actions and decisions when they are going to purchase
goods and services for personal consumptions where as fast food is a food that is dished up
swiftly and conveniently available in restaurants.
Initial start of the fast food business was from Southern California during the 1940s.
American use to start to consume the fast food and American eating habits changed. This
trend goes to in other countries and other use to consume fast food.
Utilization of fast food radically increased in Sukkur. The factors or aspects that have impact
on food choices of consumers are; like to eating out, in social gathering they love to go there,
increased of urban areas and change of life styles of the people, taste of these fast foods
because a lot of people feel pleasure in eating these fast foods. Professionals and businessmen
feel proud to meet in these restaurants.
Globalization and Urbanization are another major factors which influence the customers
towards the fast food restaurants because they provide the healthy and safe environment in
their restaurant.
In this globalization world consumers’ habits are changing with the globalization culture and
preferences. Peoples are adapting the globalization culture.
Manufacturing and processing of food like sales of these foods, its arrangements and
utilizations has been influenced by the globalization. The growing trend of processing the
foods like burgers, snacks, fizzy drinks, French fries, fried chicken and pizzas are adapted by
every culture in our regions.
Urbanizations is also an issue which is leading to change the lifestyle of the people and make
young people more sovereign. It has been seen that requirement of food is associated with
lifestyle of urban areas. Sukkur is fourteenth in population wise in Pakistan and third major
city in Sindh province. Its urbanization is growing day by day. It has been seen that the
income of urban people is high and utilization of food demand rise as income of people
increase.
These restaurants are become increasing demand of country economic growth. This industry
is become an important for the economy of our country. The need of fast-food restaurants is
increasing importance in the industry sector of our country. Fast food industry is a no 2nd
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largest industry in the Pakistan. Its value added rate is 27% and 16% is employment rate in
manufacturing sector.
This present study will better comprehend the behaviors of fast food consumers in Sukkur-
especially increase in satisfaction of costumer, and to increase the trust and loyalty towards in
these restaurants. We hope that this would help or provide the manager a better understanding
about their customers with their respective food values. We will recommend some suggestions
to managers of fast food restaurants about their consumer values.
1.1 Problem Statement
This research stream is to identify health issues (like obesity, weight gain increase in
cholesterol levels) that might affect customer’s behavior towards the firm image. These
diseases could be caused by consuming these fast foods regularly. We are also seeking out
the demographic trends that has major influence or contribution on demanding fast foods.
Now we need to analyze the behaviors which would make long-term relationship with
consumers. Through this companies can gain competitive environment which will in result
the long-term survival of fast food restaurants.
1.2 Research Questions:
 What are the trends of fast food restaurants in Sukkur and its effects on the behavior of
Sukkur’s people?
 Which demographic factor has major influence on the profitability of these restaurants?
1.3 Objectives:
As the above problems discussed, this project will accomplish the following objectives:
 To find out the behavior of Sukkur people to the fast food restaurants.
 To explore its effects and health issues related to the productivity of these restaurants.
 To determine the demographic trends towards the fast food.
1.4 Scope/Significant:
This study will tell us that the consumers’ behavior is related with the food values, how they
value and which things they value. Thus, the restaurants should improve the values of
customers. This will create a good image in the market because it is seen that higher customer
satisfaction result in higher consumer loyalty and it will insist them to go to this firm.
We hope that it will help managers for the understanding the customer satisfaction and their
food values.
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2. Theoretical Background / Literature Review
2.1 The Concepts of Consumer Behavior
Consumer Behavior concept was firstly introduced by Howard and Sheth (1969) as:
“The Theory of Buyer Behavior.”
The theory suggests us that purchase behavior of consumer, its attitudes and attention derive
from various variables.
The exogenous variables which is personality, culture, importance of purchase and financial
status.
The input variables like brands, symbolic, significance and social environment.
Another factors that can influence the consumer behavior, attitudes and attention are search
for information, sensitivity to information, perceptual bias, and satisfaction.
The consumer decision model was introduced by Blackwell, Miniard, and Engel (2001) to
explain consumer processes. This model tells us decision process of consumer which is
comprise of seven stages as need recognition, search, pre-purchase evaluation of alternatives,
purchase, consumption, post-consumption evaluation, and divestment. These stages have two
determinants as stimuli and external variables which have influence on decision process like
environmental and individual influence (Blackwell et al., 2001). Environmental composed of
culture, social class, personal influence, family, and situation and individual influence like
consumer resources, motivation and involvement, knowledge, attitudes, personality, values,
and lifestyle (Blackwell et al., 2001).
Consumer behavior approach study the determinant about consumer measurement which he
used during his purchase and how it affects the selecting or disposing of products, services,
experiences, or ideas to meet the customers. (Kuester, 2012)
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2.2The customer–business relationship
Most successful are due to their satisfied customer. They are successful because customer
was satisfied with the product and services they are providing. (Anderson and Fornell, 2000).
The investors more prefer to those companies that are good to satisfying the customers and
companies also recognize that satisfied customers will good more return than producing the
huge amount of goods. In the restaurant industry, serving the healthy and fresh food remains
the criteria to satisfied the customers (Qin et al., 2010).
In the past customer just demand for tangible product (i.e. the food itself) and they become
satisfied. But today, the people are become more gastronomically sophisticated for
demanding the dinning expectation. (Zopiatis and Pribic, 2007).
The companies need to adopt those strategies which could build customer trust. This
customer trust need the loyalty of customer, purchase retention, act with willingness of
overall market performance. (Erdem and Swait, 2004).
Many researchers have found that there is positive relationship between consumer behavioral
intentions and satisfaction such as going to that restaurant and recommending for this to your
friends; all this relate to the profitability (Ryu et al., 2010).
2.3 The Concepts of Demographic Characteristics
Kotler, Armstrong, Saunders, and Wong (1999) demographic characteristics is all about the
study of human population like gender, age, race, color income education, social class, family
life cycle, culture and ethnicity. The marketer should focus on the demographic environment
because demographic environment is classified in different groups of people. In this way, the
marketer can easily target their customers.
Kotler and Keller (2012) also stated that marketers focus is only on the population which
includes cities size, population size and its rate of growth, educational standard and other
characteristics.
Kardes, Cronley, and Cline (2008) stated about market segmentation which consist of
demographic characteristics. The demographic characteristics is study of human population
like gender, race, color, income education, social class, family life cycle, culture and
ethnicity. It is very important to give attention to every people in understanding the
customers’ characteristics. In fast food restaurants demographic characteristics is used to
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target customers, but it will also reveal us the main factors causing peoples preferences,
habits of buying, and behaviors vary dramatically.
However, the question of what instills consumer trust has been largely answered.
Parasuraman et al., focusing on the service sector, 1985) suggested that clients develop trust
when they trust that any information they provide will be kept confidential and when they
feel safe in how they are treated. Since then, a number of authors have applied this issue of
perceived service quality to the fast-food industry, finding that factors like the taste of the
food, the cleanliness of the establishment, the speed of service, and the friendliness of the
staff affect customer satisfaction and loyalty (Qin and Prybutok, 2009a, b; Qin and co.,
2010). However, the importance of price and nutritional value is growing (Kara et al., 1995),
as well as convenient hours of operation. When it comes to food products, trust is
inextricably linked to other fundamental marketing ideas like health, nutrition, and safety.
According to Brodahl (2000), consumers' purchasing decisions regarding food products may
also be influenced by their level of trust. Consumers occasionally lose faith in the food supply
chain and worry that their health may be seriously endangered (cf. Worsley and Lea, 2008),
and after that, it may be necessary to reestablish that trust. These considerations are crucial
for businesses attempting to expand their loyal customer base and gain customer loyalty.
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3. Conceptual Framework
utilitarian
Hedonic
Ethical
Values
Consumer
Behavior in
Fast Food
Restaurant
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4. Methodology
For collection of the data for this research is from primary source, we have made some
questionnaire that reveal us the necessary responses of the consumer which are important for
our research project. The pattern of these question was on Likert Scale type range of Strongly
disagree, disagree, neutral, agree, to strongly agree. The data collection was based on 43
respondents and we personally survey these responses at different restaurants of Sukkur
(Sindh, Pakistan), like KFC, Pizza hut, and Sindhri restaurant, in 2022. The survey
questionnaire was classified into three categories. The first section comprises of 7 questions
tell us the behavior of consumer. The second section comprises of 6 questions tells about the
health related factor for consuming fast foods. The last section the respondent was asked
regarding demographic information. These responses were analyzed to see the results of this
research study. The purpose of using quantitative data collection was to make sure that we
collected sufficient data to analyze accurately.
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5. Empirical Results
The results of our finding are presented in descriptive, graphic and inferential.
4.1 Descriptive Analysis:
There is descriptive analysis of data using frequency and their percentages.
Table no. 1 shows us the overall summarized responses of our survey. This table is
distributed into 17 question that we have surveyed and got the above summarized responses.
Each question is based on Likert scale ranging from strongly disagree to strongly agree and
each option is classified into its frequency and percentage. That means, we may elaborate of
the respondents’ review. This table precise us about our overall data.
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
F % F % F % F % F %
Questions
1. Hunger can be satisfied by fast food 2 4.6 6 14 9 20.9 19 44.2 7 16.3
2. Fast food saves cost 12 27.9 17 39.5 6 14 6 14 2 4.6
3. You eat fast food just for the sake of fun &
enjoyment
1 2.3 2 4.6 5 11.6 23 53.5 12 27.9
4. People prefer fast food over continental food 3 25.6 11 25.6 16 37.2 11 25.6 2 4.6
5. Are you satisfied with how the restaurant is
taking safety precautions?
6 14 12 27.9 7 16.3 13 30.2 5 11.6
6. Were you pleased with the cleanliness of your
table and seating area in the restaurant?
1 2.3 4 9.5 7 16.7 20 47.6 10 23.8
7. Were you pleased by the menu of fast food? 1 2.3 2 4.6 6 14 26 60.5 8 18.6
8. Fast food is a cause of high cholesterol. 2 4.6 3 7 2 4.6 17 39.5 19 44.2
9. Fast food is a major cause of obesity. 4 9.3 4 9.3 5 11.6 17 39.5 13 30.2
10. Prolonged use of fast food causes major health
problem.
3 7 2 4.6 1 2.3 14 32.6 23 53.5
11. People prefer fast food over home cooked food
due to taste and fluent availability.
4 9.3 7 16.3 3 7 21 48.8 8 18.6
12. Most of the people are addictive to fast food. 2 2.3 3 7 5 11.6 25 58.1 8 18.6
13. Every type of people eats fast food. 4 9.3 6 14 10 23.3 17 39.5 6 14
14. Usually people like to eat fast food outside. 3 7 3 7 4 9.3 23 53.5 10 23.3
15. Mostly people like fast food. 2 4.6 4 9.3 10 23.3 15 34.9 12 27.9
16. Most of people prefer fast food at their
workplace.
4 9.3 12 27.9 5 11.6 16 37.2 6 14
17. Almost every member of the family like fast
food.
4 9.5 8 19 10 23.8 12 28.6 8 19
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4.2 Graphical Presentation
We have also present our data into graphical format. We use pie chart for elaboration of each
question. It will be easy to define our data into graphically.
In the question 1, most of the people is agreed and rating 44.2% to agree option that hunger
can be satisfied by fast food. So, we could say that fast food can be substitute of other foods.
People can easily switch their decision to purchase from restaurant these fast foods.
16.3% respondents strongly agree
44.2% respondents agree
20.9% respondent neutral
14% respondent disagree
4.6% respondent strongly disagree
In question 2, the respondent disagree rating 39.5% on disagree option and 27.9% on
strongly disagree that fast food saves cost. They have rated 14% on neutral and agree option.
We may predict that fast food is not so much expensive but a little bit expensive. More
people will prefer the fast food if it is cheap one which mean anyone can purchase it.
4.6% respondents strongly agree
14% respondents agree
14% respondent neutral
39.5% respondent disagree
27.9% respondent strongly disagree
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In question 3, 53.5% agreed that they eat fast food just for the sake of fun & enjoyment and
27.9% strongly agree with this statement. That means, at gathering or meeting they move at
these restaurants due to convenience or enjoyment. People love to go these restaurants
because they gave them such a facility or environment. We may satisfy the restaurant has
good environment but they have to work more for reaching at highest rating.
27.9% respondents strongly agree
53.5% respondents agree
11.6% respondent neutral
4.6% respondent disagree
2.3% respondent strongly disagree
In question 4, their behavior is neutral at this question they are uncertain at this question.
Some time they desire but some time they do not. There could be many reason. Some it
would be cost they bear or it would be convenience. But fast food gave them both facility.
Most of the people can afford it and it is easy to purchase.
2.3% respondents strongly agree
25.6% respondents agree
37.2% respondent neutral
25.6% respondent disagree
7% respondent strongly disagree
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In question 5, people are disagreeing with safety precaution they take at their restaurants.
This is very important to take safety measure. Consumer will not compromise about their
health and safety. They suddenly switch to somewhere else because of this one factor. We
may have to see in depth more that why they are not satisfied safety precautions in these
restaurants.
11.6% respondents strongly agree
30.2% respondents agree
16.3% respondent neutral
27.9% respondent disagree
14% respondent strongly disagree
In question 6, they are satisfied about the cleanliness of the restaurant. They have rated
47.6% to agree option. These restaurants provide a good environment and major focus on the
cleanliness. We have also find that restaurant is very clean and well organized.
23.8% respondents strongly agree
47.6% respondents agree
16.7% respondent neutral
9.5% respondent disagree
2.3% respondent strongly disagree
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In question 7, they rated 60.5% on agree option. They like the menu of the fast food. Fast
food restaurant provides a variety of foods at their restaurants like hamburger, pizza fried
chicken and many more.
18.6% respondents strongly agree
60.5% respondents agree
14% respondent neutral
4.6% respondent disagree
2.3% respondent strongly disagree
In question 8, this question is related about the health of the consumer. He asked about that
consumption of fast food is a cause of cholesterol. They agree that fast food is a cause of high
cholesterol. They have rated 44.2% on agree option. That means fast food is unhealthy to
consume. Prolonged use of fast food is a cause of high cholesterol.
44.2% respondents strongly agree
39.5% respondents agree
4.6% respondent neutral
7% respondent disagree
4.6% respondent strongly disagree
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In question 9, they were asked about obesity that fast food is a cause obesity. 39.5% agree
with this statement. Continuous use of fast food is a cause of obesity. We may say that
restaurants are not the healthy product to their consumers.
30.2% respondents strongly agree
39.5% respondents agree
11.6% respondent neutral
9.3% respondent disagree
9.3% respondent strongly disagree
In question 10, consumer of fast food was asked about health related question that
continuous use of fast food cause of health problem. They are agreed with highest 53.5%
score. That means restaurant products are not healthy. They are not providing the healthy
services.
53.5% respondents strongly agree
32.6% respondents agree
2.3% respondent neutral
4.6% respondent disagree
7% respondent strongly disagree
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In question 11, the people prefer fast food over home cooked food. But due to cost factor they
consume less of this food. But it is very hard to define whether the people are consuming fast food
more or home cooked food.
18.6% respondents strongly agree
48.8% respondents agree
7% respondent neutral
16.3% respondent disagree
9.3% respondent strongly disagree
In question 12, Most of the people are addictive to consume fast food. Due to health issue people
do not consume the fast food. 58.1% marked agree and 18.6% on strongly agree. People avoid to
use whenever they are facing the health problem.
18.6% respondents strongly agree
58.1% respondents agree
11.6% respondent neutral
7% respondent disagree
2.3% respondent strongly disagree
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In question 13, ever type of people eat fast food which mean children, younger and older person eat
fast food. 39.5% respondent agreed and 23.3% neutral with this question.
14% respondents strongly agree
39.5% respondents agree
23.3% respondent neutral
14% respondent disagree
9.3% respondent strongly disagree
In question 14, people agreed they love to go outside in fast food restaurant. They desire to go there
in these restaurants.
23.3% respondents strongly agree
53.5% respondents agree
9.3% respondent neutral
7% respondent disagree
7% respondent strongly disagree
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In question 15, Almost majority of the people consume fast food. 34.9 respondent gave positive
result about the statement.
27.9% respondents strongly agree
34.9% respondents agree
23.3% respondent neutral
9.3% respondent disagree
4.6% respondent strongly disagree
In question 16, people prefer fast food at their workplace. Due to convenience and fluent availability
they order for fast food. These fast food is providing delivery services. At your location they deliver
you the food.
14% respondents strongly agree
37.2% respondents agree
11.6% respondent neutral
27.9% respondent disagree
9.3% respondent strongly disagree
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In question 17, every type of family member like to eat fast food. In a family there is
children, younger, women, and old people. That mean, these all family member can eat fast
food.
19 % respondents strongly agree
28.6% respondents agree
23.8% respondent neutral
19% respondent disagree
9.5% respondent strongly disagree
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6. Discussion
The reason for consumption of fast food is taste and convenience in spite of unhealthy
ingredients and low nourishing. Pizza, fried chicken, Hamburgers and Shawarma are popular
food in these restaurants. Mostly people consume these foods. In our research we find three
types of groups from the population, who spent and eat fast foods.
The following are the groups with a brief discussion. These groups specify their values in fast
food:
Group 1: Utilitarian:
In this group people mainly focus on the price they pay for the food and they also value to
others like taste and appearance. Lower score to other values. We analyze our data and we
find that this group mainly focus on the price and its appearance. We categorize them in the
utilitarian group because they have high relevance on assigned price.
Group 2: Hedonic:
In this group of people, they value all aspects like taste, appearance, restaurant environment
and convenience but they don’t value to price. This group of people are categorized into
Hedonic because they place high importance on appearance, taste and convenience.
Group 3: Ethical Values:
Some people are classified into Ethical Value group because they more emphasized on
health, environment and social responsibility. For simplification we may say they more value
to ethical related values. They gave least importance to price, appearance, and taste.
25 | P a g e
7. Conclusions
The fastening life of today changing nutrition habit of the people which showed the behavior
towards the fast food by rapid change in globalization, economic development, and
employment. So, the change in nutrition habit has rapid development in fast food industry.
The trend of fast food in Sukkur is increasing but also increasing in other cities of Pakistan.
The reason to buy fast food product showed a significant result. In our survey, we asked from
our respondent about deliciousness, pricing, visually looks, fresh and clean and appetizing.
When they were asked for hunger and its consumption they gave a positive response. That
means they are happy for freshness of the food and its appearance and taste. In terms of
relation between product and reason to buy gave highest value to its deliciousness and
convenience of the fast food.
Attitude of consumer in fast food is formed by utilitarian, hedonic, and ethical which showed
trend of consumer behavior. This trend based on three levels affective’, ‘cognitive’ and
‘behavioral’ components. Standard when behavior is followed on cognitive information
process are categorized in utilitarian group. Passive participation when behavior is followed
on behavioral learning process are categorized in Ethical value group. empirical hierarchy,
when the behavior in fast food is based on hedonic consumption.
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8. Limitations and Suggestions
Because of less finance and shortage of time the research was only limit to the city of
Pakistan, Sukkur. We were unable to collect more data to define the behavior of Sukkur in
fast food restaurants. But this data enough to predict the behavior of the people. Due to less
finance, we were bound up to our own city. The futuristic research will be from other cities of
Pakistan. More techniques will be applied.
9. Recommendations
We recommend to these restaurants they should focus on healthy product in making fast
food. Because unhealthy food can ban or close your business, media always keep aware the
people about these types of information. We also recommend that they should provide cheap
food because our economy is very worst nowadays. Our country is facing high inflation that
means we are paying more on every product. Expensive food will decrease the demand
consequently the business will face loss.
27 | P a g e
References
Allahar, H. (2015). Consumer behavior and the growth of the fast food industry in a small emerging
country. International Journal of Advances in Management and Economics, 4, 180-189.
Baig, A. K. & Saeed, M. (2012). Review of Trends in Fast Food Consumption. European Journal of
Economics, Finance and Administrative Sciences. 48. 77-85.
Goyal, A., & Singh, N.P. (2007). Consumer perception about fast food in India: an exploratory study.
British Food Journal, 109(2), 182–195
Regmi, A. & Dyck, J. (2001). Effects of Urbanization on Global Food Demand. USDA FAS, WRS-01-1.
Ming T.T., Bin Ismail H., Rasiah D. (2011) Hierarchical chain of consumer-based brand equity: review
from the fast food industry. International Business & Economics Research Journal, Vol. 10, No. 9 pp.
67-80.
Lutz, R. J. (1977). An experimental investigation of causal relations among cognitions, affect, and
behavioral intentions. Journaf (#Consumer Research, 3, 197-208.
Warshaw, P. R., & Davis, F. D. (1985). Disentangling behavioral intention and behavioral expectation.
Journal cf Experimental Social Psychology, 21,213-228.
Grunert, K.G. (1993), “Toward a concept of food-related lifestyle”, Appetite, Vol. 21 No. 2, pp. 151-
155.
Grunert, K.G., Brunsø, K. and Bisp, S. (1993), “Food-related lifestyle: development of a cross-
culturally valid instrument for market surveillance”, MAPP Working Paper No. 12, pp. 1-38

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Project Work on Consumer Behavior in Fast Food Restaurants. Their behavior towards these food and how these food impact on their health.

  • 1. 1 | P a g e CONSUMERS BEHAVIOR IN FAST FOOD RESTRUANT “A food value perspective from Sukkur” SUBMITTED BY: BILAL AHMED HAKRO Project Supervisor Dr. Qamar Abbas Mangi Project Submission is partial fulfillment of the requirements for the degree of BACHELOR OF SCIENCE IN Management Sciences FACULTY OF MANAGEMENT SCIENCES SHAH ABDUL LATIF UNIVERSITY, KHAIRPUR Batch 2019
  • 2. 2 | P a g e Title of Project CONSUMERS BEHAVIOR IN FAST FOOD RESTRUANT “A food value perspective from Sukkur”
  • 3. 3 | P a g e Table of Contents Abstract...................................................................................................................................................6 1. Introduction ....................................................................................................................................7 1.1 Problem Statement.......................................................................................................................8 1.2 Research Questions: .....................................................................................................................8 1.3 Objectives: ....................................................................................................................................8 1.4 Scope/Significant: .........................................................................................................................8 2. Theoretical Background / Literature Review ......................................................................................9 2.1 The Concepts of Consumer Behavior............................................................................................9 2.2 The customer–business relationship ....................................................................................10 2.3 The Concepts of Demographic Characteristics...........................................................................10 3. Conceptual Framework.................................................................................................................12 4. Methodology.....................................................................................................................................13 5. Empirical Results...............................................................................................................................14 4.1 Descriptive Analysis: ...................................................................................................................14 4.2 Graphical Presentation ...............................................................................................................15 6. Discussion..........................................................................................................................................24 Group 1: Utilitarian:..........................................................................................................................24 Group 2: Hedonic:.............................................................................................................................24 Group 3: Ethical Values:....................................................................................................................24 7. Conclusions .......................................................................................................................................25 8. Limitations and Suggestions .............................................................................................................26 9. Recommendations............................................................................................................................26 References ............................................................................................................................................27
  • 4. 4 | P a g e Dedication All dedication and praises to ALLAH Almighty who is REHMAN and RAHEEM and one who knows the secrets of hearts.
  • 5. 5 | P a g e ACKNOWLEDGEMENT I exalt and bow down before the creator, the most Merciful, the Gracious, the Compassionate, the Beneficent and the Sole Source of Wisdom and Knowledge for the abundant blessings bestowed upon me during the course of my project work. Glory indeed to Almighty ALLAH for helping me complete my research project. I offer my cordial gratitude to my research supervisor Dr. Qamar Abbas Mangi for his guidance, support, patience, endless encouragement, positive criticism, discussion, and intellectual input. I express my sincere thanks to Dr Akhtiar Ali Ghumro Chairman Faculty of Management Sciences for his gracious support with the students during the days of our week. Last but by no means the least, I would like to thank all my friends and colleagues and all other well-wisher who never failed in helping me whenever their assistance was needed.
  • 6. 6 | P a g e Abstract Even though it is made with unhealthy or insufficiently nourishing ingredients, fast food is convenient and delicious. The intensity of the fast food trend and its impact on Pakistani society were the main topics of this paper. The previous study had been reviewed to explain the findings. A questionnaire had been used to gather information. Fast food is a favorite of both nuclear and joint family systems due to its flavor. Fast food is very popular outside of homes. Fast food can make you feel full. Furthermore, fast food is not an economical option. Fast food is also used for fun and enjoyment. It is also determined that frequent consumption of fast food contributes to obesity, indigestion, high cholesterol, and other health issues. People prefer fast food to home-cooked meals due to its flavor and ease of availability. Fast food is another major factor in poor diet choices. Due to their busy schedules, workers prefer fast food at work. There is a negative correlation between liking, consuming, and spending money on fast food and age and education. However, as income rises, so will people's preference for fast food. Keywords: Fast food, Obesity, high cholesterol, Junk food
  • 7. 7 | P a g e 1. Introduction Consumer behavior is the people’s actions and decisions when they are going to purchase goods and services for personal consumptions where as fast food is a food that is dished up swiftly and conveniently available in restaurants. Initial start of the fast food business was from Southern California during the 1940s. American use to start to consume the fast food and American eating habits changed. This trend goes to in other countries and other use to consume fast food. Utilization of fast food radically increased in Sukkur. The factors or aspects that have impact on food choices of consumers are; like to eating out, in social gathering they love to go there, increased of urban areas and change of life styles of the people, taste of these fast foods because a lot of people feel pleasure in eating these fast foods. Professionals and businessmen feel proud to meet in these restaurants. Globalization and Urbanization are another major factors which influence the customers towards the fast food restaurants because they provide the healthy and safe environment in their restaurant. In this globalization world consumers’ habits are changing with the globalization culture and preferences. Peoples are adapting the globalization culture. Manufacturing and processing of food like sales of these foods, its arrangements and utilizations has been influenced by the globalization. The growing trend of processing the foods like burgers, snacks, fizzy drinks, French fries, fried chicken and pizzas are adapted by every culture in our regions. Urbanizations is also an issue which is leading to change the lifestyle of the people and make young people more sovereign. It has been seen that requirement of food is associated with lifestyle of urban areas. Sukkur is fourteenth in population wise in Pakistan and third major city in Sindh province. Its urbanization is growing day by day. It has been seen that the income of urban people is high and utilization of food demand rise as income of people increase. These restaurants are become increasing demand of country economic growth. This industry is become an important for the economy of our country. The need of fast-food restaurants is increasing importance in the industry sector of our country. Fast food industry is a no 2nd
  • 8. 8 | P a g e largest industry in the Pakistan. Its value added rate is 27% and 16% is employment rate in manufacturing sector. This present study will better comprehend the behaviors of fast food consumers in Sukkur- especially increase in satisfaction of costumer, and to increase the trust and loyalty towards in these restaurants. We hope that this would help or provide the manager a better understanding about their customers with their respective food values. We will recommend some suggestions to managers of fast food restaurants about their consumer values. 1.1 Problem Statement This research stream is to identify health issues (like obesity, weight gain increase in cholesterol levels) that might affect customer’s behavior towards the firm image. These diseases could be caused by consuming these fast foods regularly. We are also seeking out the demographic trends that has major influence or contribution on demanding fast foods. Now we need to analyze the behaviors which would make long-term relationship with consumers. Through this companies can gain competitive environment which will in result the long-term survival of fast food restaurants. 1.2 Research Questions:  What are the trends of fast food restaurants in Sukkur and its effects on the behavior of Sukkur’s people?  Which demographic factor has major influence on the profitability of these restaurants? 1.3 Objectives: As the above problems discussed, this project will accomplish the following objectives:  To find out the behavior of Sukkur people to the fast food restaurants.  To explore its effects and health issues related to the productivity of these restaurants.  To determine the demographic trends towards the fast food. 1.4 Scope/Significant: This study will tell us that the consumers’ behavior is related with the food values, how they value and which things they value. Thus, the restaurants should improve the values of customers. This will create a good image in the market because it is seen that higher customer satisfaction result in higher consumer loyalty and it will insist them to go to this firm. We hope that it will help managers for the understanding the customer satisfaction and their food values.
  • 9. 9 | P a g e 2. Theoretical Background / Literature Review 2.1 The Concepts of Consumer Behavior Consumer Behavior concept was firstly introduced by Howard and Sheth (1969) as: “The Theory of Buyer Behavior.” The theory suggests us that purchase behavior of consumer, its attitudes and attention derive from various variables. The exogenous variables which is personality, culture, importance of purchase and financial status. The input variables like brands, symbolic, significance and social environment. Another factors that can influence the consumer behavior, attitudes and attention are search for information, sensitivity to information, perceptual bias, and satisfaction. The consumer decision model was introduced by Blackwell, Miniard, and Engel (2001) to explain consumer processes. This model tells us decision process of consumer which is comprise of seven stages as need recognition, search, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation, and divestment. These stages have two determinants as stimuli and external variables which have influence on decision process like environmental and individual influence (Blackwell et al., 2001). Environmental composed of culture, social class, personal influence, family, and situation and individual influence like consumer resources, motivation and involvement, knowledge, attitudes, personality, values, and lifestyle (Blackwell et al., 2001). Consumer behavior approach study the determinant about consumer measurement which he used during his purchase and how it affects the selecting or disposing of products, services, experiences, or ideas to meet the customers. (Kuester, 2012)
  • 10. 10 | P a g e 2.2The customer–business relationship Most successful are due to their satisfied customer. They are successful because customer was satisfied with the product and services they are providing. (Anderson and Fornell, 2000). The investors more prefer to those companies that are good to satisfying the customers and companies also recognize that satisfied customers will good more return than producing the huge amount of goods. In the restaurant industry, serving the healthy and fresh food remains the criteria to satisfied the customers (Qin et al., 2010). In the past customer just demand for tangible product (i.e. the food itself) and they become satisfied. But today, the people are become more gastronomically sophisticated for demanding the dinning expectation. (Zopiatis and Pribic, 2007). The companies need to adopt those strategies which could build customer trust. This customer trust need the loyalty of customer, purchase retention, act with willingness of overall market performance. (Erdem and Swait, 2004). Many researchers have found that there is positive relationship between consumer behavioral intentions and satisfaction such as going to that restaurant and recommending for this to your friends; all this relate to the profitability (Ryu et al., 2010). 2.3 The Concepts of Demographic Characteristics Kotler, Armstrong, Saunders, and Wong (1999) demographic characteristics is all about the study of human population like gender, age, race, color income education, social class, family life cycle, culture and ethnicity. The marketer should focus on the demographic environment because demographic environment is classified in different groups of people. In this way, the marketer can easily target their customers. Kotler and Keller (2012) also stated that marketers focus is only on the population which includes cities size, population size and its rate of growth, educational standard and other characteristics. Kardes, Cronley, and Cline (2008) stated about market segmentation which consist of demographic characteristics. The demographic characteristics is study of human population like gender, race, color, income education, social class, family life cycle, culture and ethnicity. It is very important to give attention to every people in understanding the customers’ characteristics. In fast food restaurants demographic characteristics is used to
  • 11. 11 | P a g e target customers, but it will also reveal us the main factors causing peoples preferences, habits of buying, and behaviors vary dramatically. However, the question of what instills consumer trust has been largely answered. Parasuraman et al., focusing on the service sector, 1985) suggested that clients develop trust when they trust that any information they provide will be kept confidential and when they feel safe in how they are treated. Since then, a number of authors have applied this issue of perceived service quality to the fast-food industry, finding that factors like the taste of the food, the cleanliness of the establishment, the speed of service, and the friendliness of the staff affect customer satisfaction and loyalty (Qin and Prybutok, 2009a, b; Qin and co., 2010). However, the importance of price and nutritional value is growing (Kara et al., 1995), as well as convenient hours of operation. When it comes to food products, trust is inextricably linked to other fundamental marketing ideas like health, nutrition, and safety. According to Brodahl (2000), consumers' purchasing decisions regarding food products may also be influenced by their level of trust. Consumers occasionally lose faith in the food supply chain and worry that their health may be seriously endangered (cf. Worsley and Lea, 2008), and after that, it may be necessary to reestablish that trust. These considerations are crucial for businesses attempting to expand their loyal customer base and gain customer loyalty.
  • 12. 12 | P a g e 3. Conceptual Framework utilitarian Hedonic Ethical Values Consumer Behavior in Fast Food Restaurant
  • 13. 13 | P a g e 4. Methodology For collection of the data for this research is from primary source, we have made some questionnaire that reveal us the necessary responses of the consumer which are important for our research project. The pattern of these question was on Likert Scale type range of Strongly disagree, disagree, neutral, agree, to strongly agree. The data collection was based on 43 respondents and we personally survey these responses at different restaurants of Sukkur (Sindh, Pakistan), like KFC, Pizza hut, and Sindhri restaurant, in 2022. The survey questionnaire was classified into three categories. The first section comprises of 7 questions tell us the behavior of consumer. The second section comprises of 6 questions tells about the health related factor for consuming fast foods. The last section the respondent was asked regarding demographic information. These responses were analyzed to see the results of this research study. The purpose of using quantitative data collection was to make sure that we collected sufficient data to analyze accurately.
  • 14. 14 | P a g e 5. Empirical Results The results of our finding are presented in descriptive, graphic and inferential. 4.1 Descriptive Analysis: There is descriptive analysis of data using frequency and their percentages. Table no. 1 shows us the overall summarized responses of our survey. This table is distributed into 17 question that we have surveyed and got the above summarized responses. Each question is based on Likert scale ranging from strongly disagree to strongly agree and each option is classified into its frequency and percentage. That means, we may elaborate of the respondents’ review. This table precise us about our overall data. Strongly Disagree Disagree Neutral Agree Strongly Agree F % F % F % F % F % Questions 1. Hunger can be satisfied by fast food 2 4.6 6 14 9 20.9 19 44.2 7 16.3 2. Fast food saves cost 12 27.9 17 39.5 6 14 6 14 2 4.6 3. You eat fast food just for the sake of fun & enjoyment 1 2.3 2 4.6 5 11.6 23 53.5 12 27.9 4. People prefer fast food over continental food 3 25.6 11 25.6 16 37.2 11 25.6 2 4.6 5. Are you satisfied with how the restaurant is taking safety precautions? 6 14 12 27.9 7 16.3 13 30.2 5 11.6 6. Were you pleased with the cleanliness of your table and seating area in the restaurant? 1 2.3 4 9.5 7 16.7 20 47.6 10 23.8 7. Were you pleased by the menu of fast food? 1 2.3 2 4.6 6 14 26 60.5 8 18.6 8. Fast food is a cause of high cholesterol. 2 4.6 3 7 2 4.6 17 39.5 19 44.2 9. Fast food is a major cause of obesity. 4 9.3 4 9.3 5 11.6 17 39.5 13 30.2 10. Prolonged use of fast food causes major health problem. 3 7 2 4.6 1 2.3 14 32.6 23 53.5 11. People prefer fast food over home cooked food due to taste and fluent availability. 4 9.3 7 16.3 3 7 21 48.8 8 18.6 12. Most of the people are addictive to fast food. 2 2.3 3 7 5 11.6 25 58.1 8 18.6 13. Every type of people eats fast food. 4 9.3 6 14 10 23.3 17 39.5 6 14 14. Usually people like to eat fast food outside. 3 7 3 7 4 9.3 23 53.5 10 23.3 15. Mostly people like fast food. 2 4.6 4 9.3 10 23.3 15 34.9 12 27.9 16. Most of people prefer fast food at their workplace. 4 9.3 12 27.9 5 11.6 16 37.2 6 14 17. Almost every member of the family like fast food. 4 9.5 8 19 10 23.8 12 28.6 8 19
  • 15. 15 | P a g e 4.2 Graphical Presentation We have also present our data into graphical format. We use pie chart for elaboration of each question. It will be easy to define our data into graphically. In the question 1, most of the people is agreed and rating 44.2% to agree option that hunger can be satisfied by fast food. So, we could say that fast food can be substitute of other foods. People can easily switch their decision to purchase from restaurant these fast foods. 16.3% respondents strongly agree 44.2% respondents agree 20.9% respondent neutral 14% respondent disagree 4.6% respondent strongly disagree In question 2, the respondent disagree rating 39.5% on disagree option and 27.9% on strongly disagree that fast food saves cost. They have rated 14% on neutral and agree option. We may predict that fast food is not so much expensive but a little bit expensive. More people will prefer the fast food if it is cheap one which mean anyone can purchase it. 4.6% respondents strongly agree 14% respondents agree 14% respondent neutral 39.5% respondent disagree 27.9% respondent strongly disagree
  • 16. 16 | P a g e In question 3, 53.5% agreed that they eat fast food just for the sake of fun & enjoyment and 27.9% strongly agree with this statement. That means, at gathering or meeting they move at these restaurants due to convenience or enjoyment. People love to go these restaurants because they gave them such a facility or environment. We may satisfy the restaurant has good environment but they have to work more for reaching at highest rating. 27.9% respondents strongly agree 53.5% respondents agree 11.6% respondent neutral 4.6% respondent disagree 2.3% respondent strongly disagree In question 4, their behavior is neutral at this question they are uncertain at this question. Some time they desire but some time they do not. There could be many reason. Some it would be cost they bear or it would be convenience. But fast food gave them both facility. Most of the people can afford it and it is easy to purchase. 2.3% respondents strongly agree 25.6% respondents agree 37.2% respondent neutral 25.6% respondent disagree 7% respondent strongly disagree
  • 17. 17 | P a g e In question 5, people are disagreeing with safety precaution they take at their restaurants. This is very important to take safety measure. Consumer will not compromise about their health and safety. They suddenly switch to somewhere else because of this one factor. We may have to see in depth more that why they are not satisfied safety precautions in these restaurants. 11.6% respondents strongly agree 30.2% respondents agree 16.3% respondent neutral 27.9% respondent disagree 14% respondent strongly disagree In question 6, they are satisfied about the cleanliness of the restaurant. They have rated 47.6% to agree option. These restaurants provide a good environment and major focus on the cleanliness. We have also find that restaurant is very clean and well organized. 23.8% respondents strongly agree 47.6% respondents agree 16.7% respondent neutral 9.5% respondent disagree 2.3% respondent strongly disagree
  • 18. 18 | P a g e In question 7, they rated 60.5% on agree option. They like the menu of the fast food. Fast food restaurant provides a variety of foods at their restaurants like hamburger, pizza fried chicken and many more. 18.6% respondents strongly agree 60.5% respondents agree 14% respondent neutral 4.6% respondent disagree 2.3% respondent strongly disagree In question 8, this question is related about the health of the consumer. He asked about that consumption of fast food is a cause of cholesterol. They agree that fast food is a cause of high cholesterol. They have rated 44.2% on agree option. That means fast food is unhealthy to consume. Prolonged use of fast food is a cause of high cholesterol. 44.2% respondents strongly agree 39.5% respondents agree 4.6% respondent neutral 7% respondent disagree 4.6% respondent strongly disagree
  • 19. 19 | P a g e In question 9, they were asked about obesity that fast food is a cause obesity. 39.5% agree with this statement. Continuous use of fast food is a cause of obesity. We may say that restaurants are not the healthy product to their consumers. 30.2% respondents strongly agree 39.5% respondents agree 11.6% respondent neutral 9.3% respondent disagree 9.3% respondent strongly disagree In question 10, consumer of fast food was asked about health related question that continuous use of fast food cause of health problem. They are agreed with highest 53.5% score. That means restaurant products are not healthy. They are not providing the healthy services. 53.5% respondents strongly agree 32.6% respondents agree 2.3% respondent neutral 4.6% respondent disagree 7% respondent strongly disagree
  • 20. 20 | P a g e In question 11, the people prefer fast food over home cooked food. But due to cost factor they consume less of this food. But it is very hard to define whether the people are consuming fast food more or home cooked food. 18.6% respondents strongly agree 48.8% respondents agree 7% respondent neutral 16.3% respondent disagree 9.3% respondent strongly disagree In question 12, Most of the people are addictive to consume fast food. Due to health issue people do not consume the fast food. 58.1% marked agree and 18.6% on strongly agree. People avoid to use whenever they are facing the health problem. 18.6% respondents strongly agree 58.1% respondents agree 11.6% respondent neutral 7% respondent disagree 2.3% respondent strongly disagree
  • 21. 21 | P a g e In question 13, ever type of people eat fast food which mean children, younger and older person eat fast food. 39.5% respondent agreed and 23.3% neutral with this question. 14% respondents strongly agree 39.5% respondents agree 23.3% respondent neutral 14% respondent disagree 9.3% respondent strongly disagree In question 14, people agreed they love to go outside in fast food restaurant. They desire to go there in these restaurants. 23.3% respondents strongly agree 53.5% respondents agree 9.3% respondent neutral 7% respondent disagree 7% respondent strongly disagree
  • 22. 22 | P a g e In question 15, Almost majority of the people consume fast food. 34.9 respondent gave positive result about the statement. 27.9% respondents strongly agree 34.9% respondents agree 23.3% respondent neutral 9.3% respondent disagree 4.6% respondent strongly disagree In question 16, people prefer fast food at their workplace. Due to convenience and fluent availability they order for fast food. These fast food is providing delivery services. At your location they deliver you the food. 14% respondents strongly agree 37.2% respondents agree 11.6% respondent neutral 27.9% respondent disagree 9.3% respondent strongly disagree
  • 23. 23 | P a g e In question 17, every type of family member like to eat fast food. In a family there is children, younger, women, and old people. That mean, these all family member can eat fast food. 19 % respondents strongly agree 28.6% respondents agree 23.8% respondent neutral 19% respondent disagree 9.5% respondent strongly disagree
  • 24. 24 | P a g e 6. Discussion The reason for consumption of fast food is taste and convenience in spite of unhealthy ingredients and low nourishing. Pizza, fried chicken, Hamburgers and Shawarma are popular food in these restaurants. Mostly people consume these foods. In our research we find three types of groups from the population, who spent and eat fast foods. The following are the groups with a brief discussion. These groups specify their values in fast food: Group 1: Utilitarian: In this group people mainly focus on the price they pay for the food and they also value to others like taste and appearance. Lower score to other values. We analyze our data and we find that this group mainly focus on the price and its appearance. We categorize them in the utilitarian group because they have high relevance on assigned price. Group 2: Hedonic: In this group of people, they value all aspects like taste, appearance, restaurant environment and convenience but they don’t value to price. This group of people are categorized into Hedonic because they place high importance on appearance, taste and convenience. Group 3: Ethical Values: Some people are classified into Ethical Value group because they more emphasized on health, environment and social responsibility. For simplification we may say they more value to ethical related values. They gave least importance to price, appearance, and taste.
  • 25. 25 | P a g e 7. Conclusions The fastening life of today changing nutrition habit of the people which showed the behavior towards the fast food by rapid change in globalization, economic development, and employment. So, the change in nutrition habit has rapid development in fast food industry. The trend of fast food in Sukkur is increasing but also increasing in other cities of Pakistan. The reason to buy fast food product showed a significant result. In our survey, we asked from our respondent about deliciousness, pricing, visually looks, fresh and clean and appetizing. When they were asked for hunger and its consumption they gave a positive response. That means they are happy for freshness of the food and its appearance and taste. In terms of relation between product and reason to buy gave highest value to its deliciousness and convenience of the fast food. Attitude of consumer in fast food is formed by utilitarian, hedonic, and ethical which showed trend of consumer behavior. This trend based on three levels affective’, ‘cognitive’ and ‘behavioral’ components. Standard when behavior is followed on cognitive information process are categorized in utilitarian group. Passive participation when behavior is followed on behavioral learning process are categorized in Ethical value group. empirical hierarchy, when the behavior in fast food is based on hedonic consumption.
  • 26. 26 | P a g e 8. Limitations and Suggestions Because of less finance and shortage of time the research was only limit to the city of Pakistan, Sukkur. We were unable to collect more data to define the behavior of Sukkur in fast food restaurants. But this data enough to predict the behavior of the people. Due to less finance, we were bound up to our own city. The futuristic research will be from other cities of Pakistan. More techniques will be applied. 9. Recommendations We recommend to these restaurants they should focus on healthy product in making fast food. Because unhealthy food can ban or close your business, media always keep aware the people about these types of information. We also recommend that they should provide cheap food because our economy is very worst nowadays. Our country is facing high inflation that means we are paying more on every product. Expensive food will decrease the demand consequently the business will face loss.
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